Business: Halfway to a Record

To no one's surprise, the first wave of midyear earnings last week showed that 1959's upsurge in profits, so striking in the first quarter, had picked up even greater momentum in the second. From companies across the broad spectrum of U.S. industry—most of them old-line firms showing new vitality—came the heartiest figures to grace many a balance book in years. Items:

JOHNS-MANVILLE. The building boom pushed company sales of materials up 17% over last year to a six-month record of $176 million, lifting earnings 71% to $1.80 a share. Said President A. R. Fisher: Earnings and sales were "substantially greater than in any quarter or half-year in the company's history."

ALLIED CHEMICAL. President Glen B. Miller reported that the company's performance in the second quarter was the best on record, with sales up to $203 million from last year's $166 million and profits up nearly 100%, to $1.67 a share.

MONSANTO CHEMICAL. Profits soared 102% for the first half, from 75¢ a share to $1.51, making the half a record one for both profits and sales (up from $337 million to $414 million).

GENERAL ELECTRIC. First-half profits climbed 13%, from $1.18 to $1.34, on a 4% sales rise, in what Chairman Ralph Cordiner called "a continuation of the steady improvement begun last year." Cordiner was "encouraged" by increased consumer spending and a hike in expansion spending by industry.

P. LORILLARD. First-half earnings rose to $2.02 a share, up 15% from last year. The performance, said Chairman Lewis Gruber, was due to a $19 million rise (to $240 million) in sales of Kents, Old Golds and Newports.

COLGATE-PALMOLIVE. Six-month earnings were $1.37 a share, up from $1.08.

WHIRLPOOL CORP. Half-year earnings were $1.50 a share, nearly three times last year's figure.

GRAND UNION Co. Sales went so well in the company's chain of 440 food stores that profits in the first fiscal quarter jumped 16%.

AMERICAN TELEPHONE & TELEGRAPH BELL SYSTEM. Earnings for the quarter ending May 31 jumped to $1.32 a share, v. $1.16 a year earlier. President Frederick R. Kappel said that nearly 800,000 new telephones were connected in the quarter and that long-distance conversations rose more than 10% over last year.

INTERNATIONAL BUSINESS MACHINES. Six-month earnings climbed to $3.51 a share from $2.78 last year.

CONTINENTAL CAN Co. Half-year sales jumped to $535 million from $499 million, upping earnings to $1.54 a share from $1.44—despite a price cut in metal cans to meet competition.

Most businessmen felt that, barring a really disastrous steel strike, the second half would be as good as the first, and maybe better. Their outlook for all of 1959: a record year for both sales and profits.